Doan Nguyen Duc, chairman of Hoang Anh Gia Lai Group (HAGL), has outperformed other Vietnamese businesspeople to claim the Ernst & Young Entrepreneur of the Year 2011 Vietnam title and will represent the country in a global competition in Monaco next year.

Talking with The Saigon Times Daily, Duc unveiled how he has managed to earn recognition and strong development for his business group. Excerpts:

Could you differentiate the Ernst & Young Entrepreneur of the Year 2011 Vietnam accolade that you just won and being included in Wall Street Journal’s list of the 30 most influential business leaders in Southeast Asia earlier this year?

It’s difficult to tell the difference between the two honors as each has its own selection criteria. But I can say that the two recognitions are a great encouragement for me to continue my own business way and strategy that have helped build a strong HAGL.

HAGL is now one of the top private business groups in Vietnam. Do you think you are an influential business leader?

- Well, I would say that I could not influence all the people who I have met but a number of people, especially my employees. I have impressed these people because I do what I say and have never left a major project halfway. As a result, we have been able to successfully expand our presence in Laos, Cambodia, Myanmar and Thailand. Our business is faring well in these overseas markets. I prefer people to think of me as a reliable entrepreneur rather than an influential one.   

Business groups have their own development strategies. I can say HAGL has become one of the leading Vietnamese business groups mainly owing to the direction I have drawn over the past years and I am still confident that we are stepping on the right path. Four years ago, many companies rushed to pour investment in finance, securities, real estate and other “hot” sectors that enabled them to earn quick profit but at that time we started to invest more in growing rubber trees, mining and other areas of great potential for the future in Laos and Cambodia. And we are enjoying the fruits of our investments.

How many years did it take you to build a strong HAGL as it is today?

HAGL has emerged from a little-known family-run business that processed and turned out furniture for export nearly 20 years ago. We registered to operate in accordance with the Law on Enterprise in 1993 and have since gone ups and downs before we have become a business group that has earned a reputation not only in Vietnam but also in Laos, Cambodia and other markets. HAGL has expanded presence in four major scopes: rubber, mining, hydropower and real estate. Real estate now contributes up to 70% of HAGL’s combined revenue but its proportion will be reduced to only 25% in 2014 when all our rubber plantations, mining and hydropower projects have borne fruit.

Do you recount the most noteworthy point of HAGL on its path of development?

One of our remarkable turning points, I think, was in 2007 when Vietnam’s financial market was in its booming peak and we took this opportunity to sell our first batch of shares to the market at VND150,000 per share so we were able to mobilize a great amount of money to invest in our projects.  

What’s your ambition for the future of HAGL?

Like other companies, HAGL has invested in projects and explored business opportunities in foreign markets after it has established a firm foundation at home. We have chosen developing countries, including Laos, Cambodia and Myanmar because we believe these markets can give us what we are looking for. We would take gradual investment steps in expanding our presence overseas rather than hasty moves that often end in failures. Our vision is in the ASEAN market first before other markets in the world. We are not satisfied with the total assets of over VND23 trillion (over US$1 billion) at HAGL but are looking to hundreds of trillions of dong in the near future.

To realize this target, we are investing heavily in human resource development and modern technology. We are pouring VND100 billion (some US$4.8 million) in an enterprise resource planning project to improve our management and competitiveness.

You may be aware that HAGL has raised over US$260 million from share and bond issues, including around US$60 million through secondary listing on the London Stock Exchange in 2011. However, we have decided to suspend selling new shares to the market until 2012 because it is not favorable.

What qualifications do you think business leaders need to have in the context of global uncertainty and macro-economic issues in Vietnam?

It’s true that the world is facing a host of difficulties but it’s the difficult time when outstanding business leaders will stand out to help their companies weather tough times in their own ways. I can compare the leader as the captain whose talent and skills will help lead their ships through storms safely. Actions speak louder than words and the captain’s qualifications will be challenged and tested in a rough sea rather than a calm sea.

What have you prepared to compete in the Ernst & Young Entrepreneur of the Year 2011 planned next year in Monaco for more than 50 candidates worldwide?

Frankly speaking, I have not been ready for the global competition because I’m concentrating on my work as chairman of HAGL. I do not think I have to prepare for this. I believe that how I have developed HAGL from a little-known business and will lead this group in the current tough time will be recognized and honored globally.

SGT